25th Sep 2020 11:45
SimiGon Ltd - simulation training solutions provider - Pretax loss widens to USD1.3 million in first half of 2020 from USD433,000 a year prior, as revenue halves to USD1.4 million from USD2.7. Says decline in revenue reflecting delays in delivering against contracts during the Covid-19 pandemic and the slowing of securing new business opportunities. Gross margin 49%, compared to 66%.
Looking ahead, SimiGon says subject to revenue recognition and deliveries, it expects second half revenue to be at least the same as the first half as delays unwind but warns on the possibility of these slipping into 2021.
"We are continually reassessing our prospects given the dynamic environment and restrictions imposed across our international business, but have concluded that performance for the financial year will be behind that of 2019. This is unfortunate but understandable in the circumstances, and given that existing long-term relationships have remained strong, our contracts remain in place if delayed, and, with a resilient financial position, we are confident in the longer-term prospects for the business," says Chief Executive & Executive Chair Ami Vizer.
Pretax loss for 2019 was USD1.5 million on revenue of GBP4.9 million.
Current stock price: 5.50 pence
Year-to-date change: down 33%
By Ife Taiwo; [email protected]
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